The Securities Industry:
Requirements, Nature and
Working Conditions

Significant Points

More than half of all jobs in the securities industry are held by securities sales agents and management and financial operations workers, who generally have at least a college degree; the rest are mainly office and administrative support jobs.

Employment is expected to grow as a result of increasing investment in securities and commodities, along with a growing need for investment advice.

Governments and stock exchanges are instituting accounting and corporate reforms to increase public confidence in the investment markets.

The high earnings of successful securities sales agents will cause keen competition for these positions -- particularly in larger firms.

Nature of the Industry

The securities industry is made up of a variety of firms and organizations that bring together buyers and sellers of securities, manage investments, and offer financial advice.

The industry is undergoing substantial change because of improvements in technology, deregulation of financial services, regulatory changes, the globalization of the marketplace, and demographics.

The Internet, along with high-speed computer systems, has dramatically altered the way in which securities and commodities are bought and sold, almost completely automating the transaction process.

At the same time, the number of financial services being offered is rising as firms look for new ways to attract the business of an increasingly wealthy and investment-savvy public.

A relatively small number of professionals in the securities industry work in the exchanges, where the actual trading of securities and commodities takes place.

Computers and their applications have made brokers in the exchanges much more productive and capable of handling ever-increasing volumes of trades.

Employment in the securities industry is directly affected by the activity of the stock market and the savings and investment goals of individuals.

Because these factors are determined largely by the strength of the economy, the industry prospers during good economic times, but is much more adversely affected by downturns than are many other industries.

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